Business networks and internationalisation of contractors from developing countries An explorative study Abdul-Rashid Abdul-Aziz and Sing-Sing Wong Universiti Sains Malaysia, Penang, Malaysia Abstract Purpose – Increasingly, construction companies from developing countries are succeeding in finding a space in the international market. Their progression deserves academic attention. Using Network Theory, this paper seeks to examine the role and extent of business networks in aiding contractors from Malaysia, as one such developing country, to penetrate foreign markets. Design/methodology/approach – The research adopted the mixed method approach. A postal questionnaire survey, complemented with desk research and interviews, was used to collect data. Findings – The findings show that in fact business networks can account for much of the surveyed contractors’ overseas achievements, in terms of markets they entered, overseas projects they secured and market presence mode they adopted, although, without their competitive assets, the networks would have been meaningless. Research limitations/implications – A limitation was the small sample population, which is compensated by interviews to validate the inferences. Practical implications – Contractors from developing countries should fully cultivate, nurture, exploit and reconfigure their business networks in order to make their impact internationally. Originality/value – The paper has provided insight into the power of business networks in configuring competitiveness of contractors from a developing country in the international arena. The paper also draws attention to the limitations of the Network Perspective by highlighting the inseparability of the firms’ own competitive strengths and business networks in explaining overseas success, and the dynamics of business networks as the contractors continuously reposition their competitive positions. Keywords Business links, International business, Construction industry, Developing countries Paper type Research paper 1. Introduction The World Investment Report 2006 (United Nations, 2006) indicates that transition and developing economies invested abroad to the tune of US$1.4 trillion in 2005, up by more than four times the stock recorded ten years ago. Multinationals from these countries have therefore been making an impact on the global economy. The same is true of their construction companies, judging by the annual survey conducted by the Engineering News Record. The number of international contractors from transition and developing economies almost doubled between 1998 and 2008, from 47 to 85 (ENR, 1999, 2008). However, they have not been subjected to academic scrutiny to the level they rightfully deserve. The current issue and full text archive of this journal is available at www.emeraldinsight.com/0969-9988.htm ECAM 18,3 282 Received 7 August 2009 Revised 29 March 2010 Accepted 19 April 2010 Engineering, Construction and Architectural Management Vol. 18 No. 3, 2011 pp. 282-296 q Emerald Group Publishing Limited 0969-9988 DOI 10.1108/09699981111126188